Adelphia Communications

Adelphia Communications

1101 WordsJul 8th, 20155 Pages

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20 July 2015
Adelphia Communications Adelphia is the 6th biggest cable television provider in the United States and, with various subsidiaries, gives services of cable television and local telephone service to customers in 32 states and Puerto Rico. Adelphia means "brothers" in Greek. It used to be one of America's largest cable companies. John Rigas established the company and served as CEO and chairman. John's son Tim was CFO, and Tim's brothers, Michael, and James were Vice Presidents. All four were council members, along with John's son-in-law Peter Venetis. The Rigases also had 100% possession of class B super-voting shares, which granted the family majority voting rights.…show more content…

(Markon) The scandal came to light when the Rigases published that Adelphia was responsible for more than $2 billion in loans to family-owned entities. Outside board members took control and formed a special committee to investigate. The SEC launched a formal probe three and a half months ago and two grand juries, one in New York, and one in Pennsylvania began investigating. Adelphia also filed the lawsuit seeking more than $1 billion against the entire Rigas family, including John's wife, Doris, and his daughter Ellen and son-in-law, Peter Venetis. The lawsuit accuses the family of a violation of the Racketeer Influenced and Corrupt Organizations Act, breaching its fiduciary duties, wasting corporate assets, abusing control, breaching its contracts and other violations. The suit alleges that the Rigases "regularly conducted their business activities with the sole purpose of benefiting themselves at the expense of Adelphia" and borrowed company funds that "either directly or indirectly, unjustly enriched the Rigas family directors and other Rigas family members." The criminal complaint, filed in federal court in New York, offers the clearest view yet of one of the biggest cases of alleged insider dealing ever. In its lawsuit, filed in federal court in Manhattan, the Commission alleges that the defendants violated the antifraud, periodic reporting, record keeping, and internal controls

Financial Statements
The company that I have chosen to portray in my key assignment is the Adelphia Communications Corporation. The Adelphia Communications Corporation was a cable television company headquartered in Coudersport, Pennsylvania. It was owned by John Rigas and was founded in 1952; Adelphia became one of the largest cable companies in the United States. In 2002 Adelphia Corporation filed bankruptcy as a result of internal corruption. Shortly after filing bankruptcy the company…

Aldo Toomepuu
1 November 2015
ACG 6936
The Adelphia Debacle
Some have been ensnared in the net of excessive debt.
The net of interest holds them fast, requiring them to sell their time and energies to meet the demands of creditors. They surrender their freedom, becoming slaves to their own extravagance.
~Joseph B. Wirthlin
Background
At first glance this appears to be to another post-Enron big corporation fraud scandal. It was one of the first big cases tried after Enron. However, there…

John Rigas founded Adelphia Communications Corporation (“ACC”) in 1952 for $300. The company was fittingly named Adelphia, Greek for brother, as it employed generations of Rigas family. Skip ahead twenty years; Adelphia officially became incorporated. Roughly ten years later, John Rigas bought out his brother Gus’ stake, and his three sons became employees of Adelphia. His son-in-law was also the head of the board of directors. This positioned the Rigas family into all of the senior executive…

Introduction
The Adelphia Communications scandal occurred in March, 2002 when three of the original founding family members which included the father John Rigas, and two of his sons Michael and Timothy, along with two other company executives were arrested for improperly taking assets from the nation’s sixth-largest cable television company. The scam involved one of the biggest financial frauds faced by a publically held company. In the end stakeholders were forced to absorb massive losses as…

The Adelphia Scandal
The Dawn of Adelphia
Adelphia was founded in 1952 by John Rigas and his brother Gus Rigas in Coudersport, Pennsylvania with the purchase of their first cable franchise for $300. After 20 years, the Rigas brothers incorporated their company under the name Adelphia which derived its name from a Greek word which means brothers, an apt corporate title for a business that would employ generations of the Rigas family.
Adelphia was a cable television company…

about the character of John Rigas who owned a movie theatre named Adelphia with the shares of his brother, Gus. After Adelphia, they purchased more new companies such as Adelphia Communications Corporation and Century Communications. The continuous success of their business causes, Adelphia Company became the sixth largest cable company in United States. They faced a lot of problems throughout the journey they run their business. Adelphia always had been as a family business because most of the shareholders…

ADELPHIA COMMUNICATIONS SCANDAL REVEALED
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The Adelphia Communications Scandal Created Controversy. The Fraudster Got Sympathy From the Judge and Received a Light Sentence for Stealing From Old Folks.
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The Adelphia Communications scandal broke in 2002 when a footnote in a routine quarterly earnings statement revealed that the Rigas family had borrowed more than $2 billion from the company. But they didn't pay it back…

this case study we are asked to draw upon deontological ethics, and discuss how Adelphia Communications’ executives violated the trust of the company’s shareholders and the trust of that of the larger public. To do this we first need to take a look at deontological ethics and how the philosophy of deontological ethics affects the choices that were made in the Adelphia Communications’ case. We will also look at the Adelphia case and examine how its executives violated the trust of the company’s shareholders…

Ethical discernment Adelphia scandal
Statistical analysis
This paper relies on secondary data on a past phenomenon. It combines data from journal and other internet sources to bring out aspects of unethical behavior by Adelphia's top executive. The analysis of data takes two ethical frameworks.
Ethics involve an individual's moral judgments concerning what is right and/or wrong. Individuals or groups of people are responsible for making decisions in an organization (shaw, 2008). Decisions within…

The Adelphia Scandal
In 1952, John Rigas purchased his own cable company. By the late 1990's, he had turned it into the sixth largest cable company in the United States with 5.6 million customers. The business was always run as a family style business which led to fraudulent acts among family members and upper level executives. The family has been accused of stealing $3.1 billion from Adelphia and is now facing criminal charges. Adelphia was forced to file chapter 11 bankruptcy and as of April…